What is the difference between ERP Software and a Single Business Application?

An ERP software
or a simple business application? This dilemma is very common for business
owners who want to invest in such software but are not aware of them. Well, it
is easy to believe the vendors of such software but it is way easier to read
this blog, know the difference between them and then take an informed
decision.

To start, Enterprise Resource Planning is basically business management software with
various comprehensive systems integrated, so that this whole software can be
used as one tool to manage the entire business. Whereas a business application
is an application which is designed specifically for one need and is completely
isolated from other applications.

Except for the basic definition distinction, the
other differences in them are as follows:

1.Integration

As ERP software
cover every functional area of business like accounts, marketing, sales,
inventory, human resource and etc, it facilitates better and wider integrated
data or system. A business application has no integration because it is
designed for one specific function. For example, if you have an application for
inventory function then that application will not integrate with other
functions of the business.

2.Flexibility

The current competitive state of the
market need not be told and to stay in this cut-throat competition, it is
imperative to have well aligned and systematic functions in the organization. A
business application can't do this for you whereas ERP software enables you to
manage and control all your functions effectively. ERP software does not only
coordinate various functions within an enterprise but also integrate at
different entities level.

3.Cost-effective

Deployingbusiness applications can be really
costly especially when your business has a variety of functions. A separate
application for an individual function only creates chaos in the organisation.
Whereas deploying an ERP is a very smart and cost-effective move. It’s modular
software, where there is an ease to choose specific modules that are required
in the business and also add the left ones later when the business grows.

4.The requirement of planning

A successful implementation of ERP accounting software calls for
proper planning from the top management level. The top management along with
project management will decide on the appropriate module, training required and
the finance to be invested. For single business applications, only the specific
department needs to plan amongst themselves.

5.Ease of communication

With ERP software, integration of all
organizational entities is very simple. For example, if you generate a report
of procurement that can be easily shared with the other relevant departments with
the help of functions enabled in the software. On the other hand, in the case
of the business application, if a report is generated about any field then that
can only be shared by the way of mailing or sending it by hand.

Thus, the ERP and business application are very
different and so are there uses. Therefore, it is advised that before making
your final decision on them, do understand your business size, operations, and
requirements first because every business is different and every owner wants good
returns.